In a strategic move to bolster its fleet, Air India reportedly in talks to acquire Boeing deliveries rejected by Chinese airlines due to escalating U.S.-China trade tensions.
This opportunity, driven by geopolitical shifts, could significantly enhance Air India’s expansion plans while addressing India’s growing aviation demands.
Here’s how Air India is positioning itself to capitalize on this unique situation.
Trade War Opens Doors for Carriers
The U.S. recently imposed tariffs of up to 145% on Chinese imports, prompting China to retaliate with tariffs of up to 125% on U.S. goods, including Boeing aircraft.
As a result, Chinese carriers were directed to halt deliveries of Boeing jets, leaving approximately 10 aircraft, mostly Boeing 737 MAX models, available for reallocation.
At least one aircraft has already returned to the U.S. This week saw the announcement that a Boeing 737 MAX slated for delivery to Xiamen Airlines was returned to the United States.
The present trade situation has created a window for airlines like Air India, and more recently Malaysia Airlines, to step in.
Air India, under the Tata Group’s ownership, sees these jets as a chance to accelerate its fleet growth. The airline is particularly focused on expanding its low-cost subsidiary, Air India Express, to compete with India’s leading carrier, IndiGo.
By securing these aircraft, Air India can address fleet shortages caused by global supply chain issues and Boeing’s production cap of 38 737 MAX jets per month. This was mandated by U.S. regulators after safety concerns.
Air India: Seizing Opportunities
This isn’t Air India’s first time benefiting from China’s rejection of Boeing jets. Since 2019, when the 737 MAX was grounded globally, Air India has accepted 41 jets originally built for Chinese airlines.
These “white-tail” aircraft, unclaimed due to regulatory and trade issues, have been integrated into Air India’s fleet.
By June 2025, the airline expects to receive nine more, totaling 50 jets. This track record shows Air India’s ability to navigate complex deals to strengthen its operations.
However, acquiring these aircraft does come with challenges. Some aircraft have cabin configurations tailored for Chinese carriers, requiring modifications like converting business class seats to economy for Air India Express by April 2026.
Supply chain delays further complicate these conversions. Additionally, Boeing cannot reallocate planes still under contract with Chinese airlines, adding contractual hurdles to the negotiations.
India’s Aviation Boom Fuels Demand
India’s aviation market is booming, with carriers like Air India, Akasa Air, and SpiceJet facing aircraft shortages. The rejection of Boeing jets by China could redirect up to 20 planes to Indian airlines this year, offering a lifeline.
Air India is also eyeing future delivery slots vacated by Chinese carriers, ensuring long-term growth. Meanwhile, competitors like Malaysia Aviation Group are vying for the same slots, intensifying the race.
Conclusion
Air India’s pursuit of these aircraft follows similar expressions of interest from Malaysia Airlines.
By securing these Boeing jets, Air India stands to potentially strengthen its position in a competitive market. However, ultimate success will hinge on overcoming logistical and contractual challenges.
If Air India navigates these hurdles, it could further bolster its revival and fuel India’s aviation growth.
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